Unemployment dropped from 6.7% to 6.3%, but:
- The sharp drop occurred because the number of people working or seeking work dropped. The Bureau of Labor Statistics does not count people not looking for a job as unemployed. (Source)
- 806,000 Americans gave up on trying to find a job. (Source)
- The amount (not seasonally adjusted) of Americans not in the labor force in April rose to 92,594,000, almost 1 million more than the previous month. (Source)
- The labor force participation rate fell from 63.2% to 62.8%, trying for lowest since January 1978. (Source)
- In the past year population rose by 2,260,000; the labor force rose grew by 62,000; and those not in labor force rose by 2,203,000. (Source)
- Since the peak of the depression in February 2010, the average monthly number of job additions is 172K while the average monthly number of people who drop out of the labor force is 175K. (Source)
- Real Unemployment: Were it not for people dropping out of the labor force, the unemployment rate would be well over 9%. (Source)
- When you count all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, you get a closer picture of what the unemployment rate is. That number is what the government calls the U-6. It is at 12.3%. (Source)
Sources:
Zero Hedge,
Mish's Economic Blogspot and
CBS DC/AP.
